2020 Review – Dividends & Portfolio Updates & Goals 2021

SG Dividends for 2020

The year 2020 was an incredible tough year for me as a dividend investor. My SG portfolio tanked quite badly. Most of the stocks I owned, reduced the dividends (i.e. AIMS APAC, Neratel, Manulife REIT). For the month of Oct and Nov, I didn’t really receive much, only S$70 in dividends. For Dec, i received S$300.5 from First Reit, AIMS APAC, Boustead.

On an annual basis, the total dividends received from my SG portfolio shrunk to S$7457.99, which is ~40% lower than what I received in 2019 (S$11,746.10). My goal was to achieve S$15,000 in passive dividend for 2020, but I guess this wasn’t going to happen. Going to have to shift the goal to 2021.

Till date, I’ve invested S$160,207.90 into SG stocks. This translate to about 4.6% yield on my investments.

Portfolio Updates – Overseas ETFs/Stocks

I opened a trading account with Interactive Brokers in late 2019, and started to purchase the following Ireland-domiciled ETFs – VWRD, VDET, VHYD, VUSD. You can read more about investing in such ETFs for non-resident US aliens such as Singaporeans. One key reason was that despite investing in SG stocks over the years, the returns paled in comparison, to the US stocks. I realized that I need some form of US stocks diversification to accelerate my goal of financial independence. Hence, the choice of the above ETFs to provide the diversification.

I also bought some IDAP and ARKK along the way in 2020. IDAP is to diversify to another ETF provider, and ARKK is to gain exposure in the disruptive technology sector. My overseas ETF portfolio is as below.

As for overseas stocks, I bought some Alibaba (9988) shares, after the ANT IPO was canned, and also after the anti-trust news came out.

My action(s) to reduce income tax

I also topped up S$7,000 to my CPF-SA account, to reduce my taxable income. This year, I didn’t top up my SRS account, as I don’t really like the idea of the money locked in SRS till I reach 62. The money can be further invested for greater returns without any tax impacts in the long term, as there’s a real possibility of being taxed in higher tax brackets (at the point of withdrawal) especially when the SRS investments give tremendous compounded returns.

Goals for 2021

Invest in BTC – Bitcoin saw a meteoric rise from the lows of US$5000 to US$28,000 this year. In 2021, one of my to-do things will be to have a small investment in BTC. Right now, i am still reading up on this topic, and hopefully by mid-2021, there’s some correction for BTC.

S$150,000 passive annual income – I managed to hit S$10K in passive dividend income for 2019, but in 2020 the annual passive income dropped to S$7k plus. My original goal was S$15,000 but I think a more realistic goal would be S$10,000 for 2021. Hopefully, with the vaccine roll-out, things can start to return to normal for all countries, and so does the dividends from the companies.

That’s all for now.

Thanks for reading and wishing you all a wonderful 2021!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s